US flags Singapore as part of China’s ‘shadow transshipment network’ that avoids Trump’s tariffs

Singapore, alongside a host of other nations, has been labeled by the US administration as part of China's covert transshipment network aimed at evading tariffs, according to a White House report released on August 13. Titled "The Great Transshipment Scam," the document outlines how goods originating from China are routed through intermediate, lower-tariff countries to conceal their true point of origin.

The administration plans to deploy an AI-powered "Detective Border" system to combat illegal transshipments. The report estimates that illegal transshipments could result in a loss of US$40 billion to US$303 billion in customs revenue for the US. Singapore, placed in Tier 3 of the report, is classified as a "small, opportunistic Chinese target" with weak enforcement, low-cost labor, and other favorable conditions that make it an attractive choice for Chinese exporters seeking to reroute goods.

The White House warns that as Singapore's economy becomes more reliant on Chinese inputs, China may gain increased commercial and geopolitical leverage while maintaining indirect access to the US market. Singapore's Ministry of Trade and Industry has been approached for comment on the report, and Singapore Customs has reiterated the country's commitment to trade compliance and adherence to international best practices.